Magdalena trustees approve budget transfers, eye water rate adjustments

At the July 28 regular meeting of the Magdalena Village Board of Trustees, officials approved a series of budget resolutions and discussed fiscal strategies for the coming year, including a transfer of general funds to cover deficits in the water and wastewater departments.

Mayor Richard Rumpf opened the meeting with an update on legal representation, noting that the Village’s longtime attorney is downsizing his office and will not renew contracts with municipalities. “We’ve reached out to the Municipal League for internal attorney services,” Rumpf said, adding that Municipal League is also exploring options to provide legal support. The Village has until the end of October to secure a new arrangement.

Finance Officer Michael Steininger presented final year-end adjustments for fiscal year 2024–2025, including corrections to grant classifications and canceled loan entries. “There were sizable checks issued in late June for grants pending reimbursement,” Steininger explained. One $500,000 item previously marked as a loan was reclassified as a grant for the fire department. Other adjustments included repayment of an unused NMFA loan and a minor budget entry error.

Trustee Jim Nelson moved to approve the resolution, seconded by Trustee Michael Thompson. The motion passed unanimously.

Steininger also presented the final quarterly financial report, highlighting a general fund balance of over $770,000. He noted that the fire protection fund finished the year at $4,000, law enforcement protection at $40,800, and the lodgers tax fund at $15,000. The senior center ended with $13,000, while the capital grants fund closed just under $1,000 following a cash transfer to cover late-June reimbursements. The NMFA fund held $16,000, primarily for the interception of funds for fire and law enforcement vehicles and equipment. The water fund ended at $15,000, which Steininger stated was substantially less than estimated, while solid waste closed at $85,000 and wastewater at $9,800. The ambulance fund finished with $44,800, and the library fund with $700, thanks in part to grant support. Steininger added that the Village typically approves up to $55,000 annually for library operations, but only $25,000 was needed this year. The trust and agency fund held $123,000, the bulk of which belongs to Hop Canyon, including meter deposits and funds for which the Village acts as fiscal agent for the fire department. Steininger noted that the library required only $25,000 in Village support this year, thanks to incoming grants. “The grants help out tremendously when they come in,” he said.

When presenting the fiscal year 2025–2026 budget, Steininger requested trustee input on how to address deficits in the water and wastewater funds. Trustees had two options: identify specific areas to adjust or authorize a general fund transfer. Mayor Rumpf supported the transfer, citing upcoming loans for water infrastructure and recent overtime costs due to SCADA system issues.

Steininger clarified the amounts needed: $120,000 for the water fund and $26,000 for wastewater. Trustee Donna Dawson made the motion to approve the transfers and discuss the adjustments again at a later time; this motion passed unanimously. “The rates alone won’t cover the deficit,” Steininger said, “but it’s a start in the right direction.”

Mayor Rumpf thanked Steininger for his work: “Michael, thank you for all the time you put in on this stuff, getting us through it.”

The Board also approved participation in the South Central Council of Governments (SCCOG) for fiscal year 2025–2026. The $500 membership fee includes access to grant writing and planning services. Rumpf will serve as the primary representative, with Trustee Jim Nelson as alternate.

Following an executive session, the Board approved the hiring of Edmund Apachito as a part-time kitchen helper and driver for the Magdalena Senior Center. “We’ve had good response from the people,” Rumpf said. “Even Donna’s cats like him.”

During public input, a resident requested that the budget be posted online. Steininger responded that the approved June version could be shared, noting that the current draft is still pending DFA approval.